Archive for January, 2014

If you have ever found yourself in a situation where you must be able to understand and dissect the United States tax code, you likely only understand how confusing of a matter it can be. That’s where a tax debt lawyer can come in handy. If you need help with your tax debt situation, it could greatly benefit you to consult a tax debt lawyer on the matter. Here are a few reasons why:

Ability to Negotiate

Having a tax debt lawyer on your side gives you the ability to negotiate the complex tax laws. While each case is different, a tax debt lawyer can help you navigate your way through the codes and find the best possible solution available for your specific tax debt situation. While it may not seem so upon first glance, many of the tax codes can actually be negotiated. Your best shot at taking advantage of these negotiations is through a lawyer who understands the complexities of the code.

Attorney Client Privilege

Your tax debt situation can depend on a lot of things, so it is always good to know you have the attorney client privilege when using the services of a tax debt lawyer. The same cannot be said for working with an accountant or other financial professional. Using a tax debt lawyer lets you rest assured your tax debt situation is being handled in the safest and most professional manner possible.

Representation

If you have ever dealt with the IRS, you know how suffocating it can sometimes feel. With a tax debt lawyer you never have to feel alone. By power of attorney representation, your lawyer can handle all of your communication with the IRS for you.

If you owe back taxes to the IRS, you are not alone. With the decline of the economy over the last few years, Americans in all tax brackets have found themselves owing the government significant amounts of back taxes. What are your options? The good news is that there are a few different methods for getting rid of your tax debt. Here is a look at three options that you should discuss with a tax debt attorney:

Offer in Compromise

You must be careful about this option, but an offer in compromise can be a fantastic way to pay back taxes. The OIC program works by reducing a person’s tax debt through a settlement. This settlement is based off of the amount of back taxes owed by the person and their income, assets, expenses, etc. These deals are often times too good to be true, but if you find one that works, it may be your best option. Be prepared to pay a high initial payment.

Installment Agreement

This tax debt relief option should always be considered. Unless another option is perfect for your situation, this will likely be your best option for paying off back taxes. The benefits of an installment agreement are easier payments, reduction in IRS letters and calls, and availability. Just remember that interest will continue to accrue over the life of your installment agreement.

Filing or Amending Past Tax Returns

If your liability was overstated on your original tax return, filing an amendment may be a good way to reduce that liability. This is a strategic option that must apply to your specific situation. You will likely need to speak to a tax code expert to understand how it could work for you.